Anger of families after airline collapses at 3am

Anger of families after airline collapses at 3am

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Grounded XL planes

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Mark and Kelly Belcher

Honeymoon: Mark and Kelly Belcher were off to Greece with their children

Bust: XL Leisure Group was Britain's third biggest tour operator

Up to 85,000 British holidaymakers were left stranded today after the UK's third biggest tour operator went bust.

XL Leisure Group was forced to cancel all flights and ground its fleet of aircraft.

The company announced the news at 3am after talks to save it failed and blaming the credit crunch and rising fuel prices for the crash.

The Civil Aviation Authority has promised to fly home passengers caught up in the collapse and estimates that the number could hit 85,000. A further 200,000 people had booked holidays with XL and will now have to make new arrangements. Many may not get their money back.

The move took holiday makers by surprise, prompting angry scenes at airports-XL had been taking bookings until very recently.

At Gatwick, XL customers told of their fury at not discovering the news until they arrived there. Many were informed by airport officials, prompting a scramble for tickets on alternative airlines. Many others simply turned at the XL check-in desks and headed home.

Graham White, 27, an estate agent from London, said: "We didn't find out about it until we got here. I'm pretty annoyed."

Kim Lazarow, 26, who was travelling with him to the Greek island of Skiathos for a week, said: " Everyone's been going online booking flights as soon as they found out so I'm not sure what we're going to get."

Among the disappointed travellers were Kelly Belcher 32, and her husband Mark, both from Southend. They were due to fly out on their honeymoon to Skiathos in Greece, with their two small children and Mrs Belcher's parents.

Mrs Belcher said: "It's devastating, we got married last Saturday and had been looking forward to this especially as it is our children's first time in a foreign country. We spent £2,000 on this holiday and now we're just desperately hoping that something can be worked out."

Jim Duwaine, from Portsmouth, had been due to catch an early flight to Menorca. He said: "I am absolutely devastated. We're just trying to get some other flights, but it's not looking good. "

Transport Secretary Ruth Kelly said everything possible was being done to get stranded holidaymakers home.

She said: "The industry has reacted well to this collapse of a major tour company and are assisting the CAA with the recovery plans to ensure that affected passengers are repatriated as soon as possible."

The XL Group carried 2.3 million passengers last year and employs 1,700 people worldwide. The group, based in Crawley, west Sussex, runs an airline and owns several travel companies. XL Airways flies to more than 50 destinations across Europe, America and Africa.

In a statement XL said: "The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding." Customers who booked through four tour operators - The Really Great Holiday Company, Kosmar Holidays, Freedom Flights, and Aspire Holidays - are protected under the Air Travel Organiser's Licenses scheme

Those who booked direct with an XL Group company are urged to contact Atol immediately.

XL's demise follows the collapse of budget airline Zoom last month.

Atol spokesman David Clover described the group's collapse as "a huge failure" and urged disgruntled holidaymakers to be patient.